Hi everyone!! Today we have a very special guest post from Hannah at Omaby.com. Hannah writes about pregnancy and parenting. Today, she will be sharing with us 6 Secrets to Family Savings for Young Couples!!
No one is promised tomorrow, but you don’t want to live your retirement years with just a few options. Or worse, none at all. In this post, let’s talk about the six secrets to family savings for young couples.
Whether you and your partner have one or multiple sources of income, these secrets will help you maintain a good financial footing. As long as you follow them, you can easily make ends meet.
1. Make a budget
It’s always the first step if you want to take control of your finances. Having a budget allows you to understand where your income is going. It also enables you to adjust it based on how much you can afford.
Write down your budget and separate items by categories. Always stick to it. If it’s your first time to have a budget, you may wish to use some of the best online budgeting tools available.
With a budget, you’ll understand your cash flow. You can quickly catch places where you spend more than what you have planned.
2. Live within your means
You must be honest with yourself and your partner of what you can afford. Never go into debt just to get a brand new car if you could only afford a second-hand unit.
Never go on a shopping spree if you knew that you’d be racking up bills on credit card. Keep in mind that if one of you would lose a source of income, it’d be difficult to pay off your debt.
Then, instead of paying with credit card, use cash. However, if you need to pay through credit card, you should be able to understand the difference between needs and wants.
It’s also vital that you cut down on your expenses. One of the most obvious expenses that you could let go is the cable. It’s most likely that you’re wasting a lot of money on pointless television shows.
You may also want to get rid of your gym membership. Keep in mind that you can still exercise at home if you wish to stay in shape without having to spend a lot. On the other hand, you could ask for some deals and prices on your gym membership contract.
3. Automate savings
It’s most likely that you’re getting paid through direct deposit. If that’s your case, it’s easier to direct your funds into several accounts.
You’ll need to set up multiple savings accounts for specific goals, like a trip to Asia or a brand new car. Doing so will help you see the progress you’re making.
Saving money automatically before it even reaches your bank account will help you save funds in the future. Thus, it increases your contributions in the long run.
4. Get another job or source of income
Chances are, you still can’t pay your bills even if you make a budget and save. That said; consider finding ways that that let you bring in some extra income. It’s either you or your partner who’ll look for it.
The best thing about today is that you can easily make extra income at home working for a few hours a week. For example, if you’re good at web design, you could go to an online marketplace and find clients who need such service.
You may also wish to start a small home business. But avoid those get-rich-quick schemes. They’ll never make you rich anyway.
Another way to earn extra income is to sell online. If you have things at home that you don’t even use or rarely use, you could just sell them and earn.
Or you could rent out your vacant room or basement. On the other hand, if you’re living in a huge house, but you don’t need a huge space, you could downsize and get a smaller home or apartment. Doing so will help you realize the many benefits of downsizing your home to save you money and boost your family savings.
5. Invest wisely
Don’t just put your money in your bank account. Rather, invest it. One of the best ways to invest your money is to buy stocks.
But before you invest, you should talk to your partner. If both of you want to invest in stock market, try asking the help of a financial planner.
It doesn’t matter what your investment choices are. The most important thing here is to review your investments regularly and make sure that the portfolios are balanced.
6. Have an emergency fund
You may have a great career today or earn a comfortable living. You may not be worrying about your debt today, but how about tomorrow? Because you don’t know what’s coming, you could find yourself unprepared for an emergency.
Couples could easily be under stress after receiving an unexpected pink slip or experience an accident. Illness could also take a toll on your finances. If you don’t have an emergency savings account, your finance would easily throw you off track.
All couples must have an emergency fund, even if you don’t have to worry about your finances today. The fund must be three to six months’ worth of your living expenses. It must be placed in a secure account, such as a money-market fund.
If you have such fund, it’ll reduce stress knowing that you have money to pay off debts. It’ll give you comfort because you know that you won’t be walking a fine line between comfort and tragedy.
Young couples are usually risk-takers. They don’t mind spending a lot of their money because they knew that they have a stable job.
Unfortunately, jobs, these days, can be easily wiped away. The company you’re working now may be in good standing. But it’ll be different a few years from now.
If you have an excellent family saving, you don’t need to worry about the future. But just because you have savings doesn’t mean that you need to spend more. Always look at your budget first before you spend.
These six secrets to family savings for young couples are effective in helping you grow your savings account. Following them will help you get a brighter tomorrow regarding your finances.
Hannah Tong is the founder of Omaby.com, a blog dedicated to providing accurate advice to mothers regarding childcare. She loves taking care of her kids and teaching them the right things. She is also enthusiastic and loves sharing her experiences to teach others about how to care for their families’ health. Check the latest article (Child’s development) here.